/FIRST ADD -- DA41365 -- Comerica Incorporated Earnings/

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

Comerica Incorporated and Subsidiaries

Three Months Ended

Years Ended

December 31,

September 30,

December 31,

December 31,

(in millions, except per share data)

2009

2009

2008

2009

2008

PER COMMON SHARE AND COMMON STOCK DATA

Diluted net income (loss)

$         (0.41)  

$         (0.10)  

$          0.02   

$          (0.77)  

$           1.29   

Cash dividends declared

0.05   

0.05   

0.33   

0.20   

2.31   

Common shareholders' equity (at period end)

31.82   

31.90   

33.31   

Average diluted shares (in thousands)

151,516   

151,478   

150,834   

151,460   

151,035   

KEY RATIOS

Return on average common shareholders' equity

(5.10)  

%

(1.27)  

%

0.19   

%

(2.37)  

%

3.79   

%

Return on average assets

(0.19)  

0.12   

0.12   

0.03   

0.33   

Tier 1 common capital ratio (a) (b)

8.18   

8.04   

7.08   

Tier 1 risk-based capital ratio (b)

12.46   

12.21   

10.66   

Total risk-based capital ratio (b)

16.93   

16.79   

14.72   

Leverage ratio (b)

13.22   

12.46   

11.77   

Tangible common equity ratio (a)

7.99   

7.96   

7.21   

AVERAGE BALANCES

Commercial loans

$       21,971   

$      23,401   

$      28,507   

$       24,534   

$       28,870   

Real estate construction loans

3,703   

4,033   

4,536   

4,140   

4,715   

Commercial mortgage loans

10,393   

10,359   

10,613   

10,415   

10,411   

Residential mortgage loans

1,664   

1,720   

1,851   

1,756   

1,886   

Consumer loans

2,517   

2,550   

2,639   

2,553   

2,559   

Lease financing

1,181   

1,218   

1,359   

1,231   

1,356   

International loans

1,324   

1,501   

1,833   

1,533   

1,968   

Total loans

42,753   

44,782   

51,338   

46,162   

51,765   

Earning assets

53,953   

57,513   

61,134   

58,162   

60,422   

Total assets

58,396   

61,948   

65,981   

62,809   

65,185   

Noninterest-bearing deposits

14,430   

13,225   

10,575   

12,900   

10,623   

Interest-bearing core deposits

22,312   

22,582   

22,523   

22,435   

23,739   

Total core deposits

36,742   

35,807   

33,098   

35,335   

34,362   

Common shareholders' equity

4,876   

4,923   

5,206   

4,959   

5,166   

Total shareholders' equity

7,024   

7,065   

6,301   

7,099   

5,442   

NET INTEREST INCOME

Net interest income (fully taxable equivalent basis) (c)

$            398   

$           387   

$           434   

$         1,575   

$         1,821   

Fully taxable equivalent adjustment

2   

2   

3   

8   

6   

Net interest margin (c) (d)

2.94   

%

2.68   

%

2.82   

%

2.72   

%

3.02   

%

CREDIT QUALITY

Nonaccrual loans

$         1,163   

$        1,194   

$           917   

Reduced-rate loans

18   

2   

-   

Total nonperforming loans

1,181   

1,196   

917   

Foreclosed property

111   

109   

66   

Total nonperforming assets

1,292   

1,305   

983   

Loans past due 90 days or more and still accruing

101   

161   

125   

Gross loan charge-offs

233   

245   

144   

$            896   

$            500   

Loan recoveries

8   

6   

11   

27   

29   

Net loan charge-offs

225   

239   

133   

869   

471   

Lending-related commitment charge-offs

-   

-   

-   

-   

1   

Total net credit-related charge-offs

225   

239   

133   

869   

472   

Allowance for loan losses

985   

953   

770   

Allowance for credit losses on lending-related commitments

37   

35   

38   

Total allowance for credit losses

1,022   

988   

808   

Allowance for loan losses as a percentage of total loans

2.34   

%

2.19   

%

1.52   

%

Net loan charge-offs as a percentage of average total loans

2.10   

2.14   

1.04   

1.88   

%

0.91   

%

Net credit-related charge-offs as a percentage of average total loans

2.10   

2.14   

1.04   

1.88   

0.91   

Nonperforming assets as a percentage of total loans and foreclosed property

3.06   

2.99   

1.94   

Allowance for loan losses as a percentage of total nonperforming loans

83   

80   

84   

(a) See Reconciliation of Non-GAAP Financial Measures.

(b) December 31, 2009 ratios are estimated

(c) Year-to-date 2008 net interest income declined $38 million due to tax-related non-cash lease income charges. Excluding these charges, the net interest margin would have been 3.08%

    for the year ended December 31, 2008.

(d) Excess liquidity, represented by average balances deposited with the Federal Reserve Bank, reduced the net interest margin by 13 basis points, 16 basis points and 11 basis points in the

    fourth quarter 2009, third quarter 2009 and full-year 2009, respectively.  Excluding excess liquidity, the net interest margin would have been 3.07%, 2.84% and 2.83% in each respective

    period.  Excess liquidity reduced the net interest margin by 3 basis points and one basis point in the fourth quarter 2008 and full-year 2008, respectively.

CONSOLIDATED BALANCE SHEETS (unaudited)

Comerica Incorporated and Subsidiaries

December 31,

September 30,

December 31,

(in millions, except share data)

2009

2009

2008

ASSETS

Cash and due from banks

$               774 

$                 799 

$               913 

Federal funds sold and securities purchased under agreements to resell

- 

- 

202 

Interest-bearing deposits with banks

4,843 

2,219 

2,308 

Other short-term investments

138 

142 

158 

Investment securities available-for-sale

7,416 

8,882 

9,201 

Commercial loans

21,690 

22,546 

27,999 

Real estate construction loans

3,461 

3,870 

4,477 

Commercial mortgage loans

10,457 

10,380 

10,489 

Residential mortgage loans

1,651 

1,679 

1,852 

Consumer loans

2,511 

2,544 

2,592 

Lease financing

1,139 

1,197 

1,343 

International loans

1,252 

1,355 

1,753 

Total loans

42,161 

43,571 

50,505 

Less allowance for loan losses

(985)

(953)

(770)

Net loans

41,176 

42,618 

49,735 

Premises and equipment

644 

657 

683 

Customers' liability on acceptances outstanding

11 

12 

14 

Accrued income and other assets

4,261 

4,261 

4,334 

Total assets

$          59,263 

$            59,590 

$          67,548 

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits

$          15,871 

$            13,888 

$          11,701 

Money market and NOW deposits

14,450 

13,556 

12,437 

Savings deposits

1,342 

1,331 

1,247 

Customer certificates of deposit

6,413 

7,466 

8,807 

Other time deposits

1,047 

2,801 

7,293 

Foreign office time deposits

542 

572 

470 

Total interest-bearing deposits

23,794 

25,726 

30,254 

Total deposits

39,665 

39,614 

41,955 

Short-term borrowings

462 

425 

1,749 

Acceptances outstanding

11 

12 

14 

Accrued expenses and other liabilities

1,036 

1,252 

1,625 

Medium- and long-term debt

11,060 

11,252 

15,053 

Total liabilities

52,234 

52,555 

60,396 

Fixed rate cumulative perpetual preferred stock, series F,

  no par value, $1,000 liquidation value per share:

    Authorized - 2,250,000 shares

    Issued - 2,250,000 shares at 12/31/09, 9/30/09 and 12/31/08

2,151 

2,145 

2,129 

Common stock - $5 par value:

    Authorized - 325,000,000 shares

    Issued - 178,735,252 shares at 12/31/09, 9/30/09 and 12/31/08  

894 

894 

894 

Capital surplus

740 

738 

722 

Accumulated other comprehensive loss

(336)

(361)

(309)

Retained earnings

5,161 

5,205 

5,345 

Less cost of common stock in treasury - 27,555,623 shares at 12/31/09, 27,620,576 shares

    at 9/30/09 and 28,244,967 shares at 12/31/08

(1,581)

(1,586)

(1,629)

Total shareholders' equity

7,029 

7,035 

7,152 

Total liabilities and shareholders' equity

$          59,263 

$            59,590 

$          67,548 

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

Comerica Incorporated and Subsidiaries

Three Months Ended

Years Ended

December 31,

December 31,

(in millions, except per share data)

2009

2008

2009

2008

INTEREST INCOME

Interest and fees on loans

$          424 

$          612 

$       1,767 

$       2,649 

Interest on investment securities

53 

101 

329 

389 

Interest on short-term investments

2 

3 

9 

13 

Total interest income

479 

716 

2,105 

3,051 

INTEREST EXPENSE

Interest on deposits

52 

158 

372 

734 

Interest on short-term borrowings

- 

9 

2 

87 

Interest on medium- and long-term debt

31 

118 

164 

415 

Total interest expense

83 

285 

538 

1,236 

Net interest income

396 

431 

1,567 

1,815 

Provision for loan losses

257 

192 

1,083 

686 

Net interest income after provision for loan losses

139 

239 

484 

1,129 

NONINTEREST INCOME

Service charges on deposit accounts

56 

55 

228 

229 

Fiduciary income

38 

47 

161 

199 

Commercial lending fees

21 

16 

79 

69 

Letter of credit fees

19 

17 

69 

69 

Card fees

14 

13 

51 

58 

Foreign exchange income

11 

7 

41 

40 

Bank-owned life insurance

9 

9 

35 

38 

Brokerage fees

7 

12 

31 

42 

Net securities gains

10 

4 

243 

67 

Other noninterest income

29 

(6)

112 

82 

Total noninterest income

214 

174 

1,050 

893 

NONINTEREST EXPENSES

Salaries

174 

187 

687 

781 

Employee benefits

51 

53 

210 

194 

    Total salaries and employee benefits

225 

240 

897 

975 

Net occupancy expense

43 

42 

162 

156 

Equipment expense

16 

16 

62 

62 

Outside processing fee expense

23 

27 

97 

104 

FDIC insurance expense

15 

7 

90 

16 

Software expense

23 

19 

84 

76 

Other real estate expense

22 

5 

48 

10 

Legal fees

12 

10 

37 

29 

Litigation and operational losses

3 

3 

10 

103 

Customer services

2 

2 

4 

13 

Provision for credit losses on lending-related commitments

2 

(2)

(1)

18 

Other noninterest expenses

38 

42 

159 

189 

Total noninterest expenses

424 

411 

1,649 

1,751 

Income (loss) from continuing operations before income taxes

(71)

2 

(115)

271 

Provision (benefit) for income taxes

(42)

(17)

(131)

59 

Income (loss) from continuing operations

(29)

19 

16 

212 

Income from discontinued operations, net of tax

- 

1 

1 

1 

NET INCOME (LOSS)  

(29)

20 

17 

213 

Preferred stock dividends

33 

17 

134 

17 

Net income (loss) applicable to common stock

$          (62)

$              3 

$        (117)

$          196 

Basic earnings per common share:

     Income (loss) from continuing operations

$       (0.41)

$         0.01 

$       (0.78)

$         1.29 

     Net income (loss)

(0.41)

0.02 

(0.77)

1.30 

Diluted earnings per common share:

    Income (loss) from continuing operations

(0.41)

0.01 

(0.78)

1.29 

    Net income (loss)

(0.41)

0.02 

(0.77)

1.29 

Cash dividends declared on common stock

8 

50 

30 

348 

Cash dividends declared per common share

0.05 

0.33 

0.20 

2.31 

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (unaudited)

Comerica Incorporated and Subsidiaries

Fourth

Third

Second

First

Fourth

Fourth Quarter 2009

Compared To:

Quarter

Quarter

Quarter

Quarter

Quarter

Third Quarter 2009

Fourth Quarter 2008

(in millions, except per share data)

2009

2009

2009

2009

2008

Amount

Percent

Amount

Percent

INTEREST INCOME

Interest and fees on loans

$       424   

$       444   

$       447   

$       452   

$       612   

$        (20)  

(4)  

%

$      (188)  

(31)  

%

Interest on investment securities

53   

64   

103   

109   

101   

(11)  

(18)  

(48)  

(48)  

Interest on short-term investments

2   

3   

2   

2   

3   

(1)  

(25)  

(1)  

(21)  

Total interest income

479   

511   

552   

563   

716   

(32)  

(6)  

(237)  

(33)  

INTEREST EXPENSE

Interest on deposits

52   

89   

106   

125   

158   

(37)  

(43)  

(106)  

(68)  

Interest on short-term borrowings

-   

-   

-   

2   

9   

-   

(63)  

(9)  

(99)  

Interest on medium- and long-term debt

31   

37   

44   

52   

118   

(6)  

(15)  

(87)  

(74)  

Total interest expense

83   

126   

150   

179   

285   

(43)  

(34)  

(202)  

(71)  

Net interest income

396   

385   

402   

384   

431   

11   

3   

(35)  

(8)  

Provision for loan losses

257   

311   

312   

203   

192   

(54)  

(17)  

65   

34   

Net interest income after provision

      for loan losses

139   

74   

90   

181   

239   

65   

89   

(100)  

(41)  

NONINTEREST INCOME

Service charges on deposit accounts

56   

59   

55   

58   

55   

(3)  

(6)  

1   

1   

Fiduciary income

38   

40   

41   

42   

47   

(2)  

(2)  

(9)  

(18)  

Commercial lending fees

21   

21   

19   

18   

16   

-   

3   

5   

33   

Letter of credit fees

19   

18   

16   

16   

17   

1   

6   

2   

8   

Card fees

14   

13   

12   

12   

13   

1   

3   

1   

2   

Foreign exchange income

11   

10   

11   

9   

7   

1   

-   

4   

38   

Bank-owned life insurance

9   

8   

10   

8   

9   

1   

10   

-   

3   

Brokerage fees

7   

7   

8   

9   

12   

-   

(8)  

(5)  

(40)  

Net securities gains

10   

107   

113   

13   

4   

(97)  

(90)  

6   

N/M

Other noninterest income

29   

32   

13   

38   

(6)  

(3)  

(7)  

35   

N/M

Total noninterest income

214   

315   

298   

223   

174   

(101)  

(32)  

40   

23   

NONINTEREST EXPENSES

Salaries

174   

171   

171   

171   

187   

3   

2   

(13)  

(7)  

Employee benefits

51   

51   

53   

55   

53   

-   

2   

(2)  

(3)  

    Total salaries and employee benefits

225   

222   

224   

226   

240   

3   

2   

(15)  

(6)  

Net occupancy expense

43   

40   

38   

41   

42   

3   

6   

1   

2   

Equipment expense

16   

15   

15   

16   

16   

1   

3   

-   

(5)  

Outside processing fee expense

23   

24   

25   

25   

27   

(1)  

(6)  

(4)  

(17)  

FDIC insurance expense

15   

15   

45   

15   

7   

-   

-   

8   

N/M

Software expense

23   

21   

20   

20   

19   

2   

8   

4   

18   

Other real estate expense

22   

10   

9   

7   

5   

12   

N/M

17   

N/M

Legal fees

12   

8   

10   

7   

10   

4   

41   

2   

24   

Litigation and operational losses

3   

3   

2   

2   

3   

-   

(27)  

-   

5   

Customer services

2   

1   

1   

-   

2   

1   

31   

-   

(27)  

Provision for credit losses on lending-related commitments

2   

2   

(4)  

(1)  

(2)  

-   

(19)  

4   

N/M

Other noninterest expenses

38   

38   

44   

39   

42   

-   

13   

(4)  

(5)  

Total noninterest expenses

424   

399   

429   

397   

411   

25   

6   

13   

3   

Income (loss) from continuing operations before income taxes

(71)  

(10)  

(41)  

7   

2   

(61)  

N/M

(73)  

N/M

Provision (benefit) for income taxes

(42)  

(29)  

(59)  

(1)  

(17)  

(13)  

(48)  

(25)  

N/M

Income (loss) from continuing operations

(29)  

19   

18   

8   

19   

(48)  

N/M

(48)  

N/M

Income from discontinued operations, net of tax

-   

-   

-   

1   

1   

-   

N/M

(1)  

(92)  

NET INCOME (LOSS)  

(29)  

19   

18   

9   

20   

(48)  

N/M

(49)  

N/M

Preferred stock dividends

33   

34   

34   

33   

17   

(1)  

-   

16   

95   

Net income (loss) applicable to common stock

$        (62)  

$        (15)  

$       (16)  

$        (24)  

$           3   

$        (47)  

N/M

%

$        (65)  

N/M

%

Basic earnings per common share:

     Income (loss) from continuing operations

$     (0.41)  

$     (0.10)  

$    (0.11)  

$     (0.16)  

$      0.01   

$     (0.31)  

N/M

%

$     (0.42)  

N/M

%

     Net income (loss)

(0.41)  

(0.10)  

(0.10)  

(0.16)  

0.02   

(0.31)  

N/M

(0.43)  

N/M

Diluted earnings per common share:

    Income (loss) from continuing operations

(0.41)  

(0.10)  

(0.11)  

(0.16)  

0.01   

(0.31)  

N/M

(0.42)  

N/M

    Net income (loss)

(0.41)  

(0.10)  

(0.10)  

(0.16)  

0.02   

(0.31)  

N/M

(0.43)  

N/M

Cash dividends declared on common stock

8   

7   

8   

7   

50   

1   

2   

(42)  

(85)  

Cash dividends declared per common share

0.05   

0.05   

0.05   

0.05   

0.33   

-   

-   

(0.28)  

(85)  

N/M - Not meaningful

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited)

Comerica Incorporated and Subsidiaries

2009

2008

(in millions)

4th Qtr

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

Balance at beginning of period

$       953   

$        880   

$         816   

$        770   

$        712   

Loan charge-offs:

   Commercial

114   

113   

88   

61   

66   

   Real estate construction:

       Commercial Real Estate business line (a)

33   

63   

81   

57   

35   

       Other business lines (b)

-   

1   

-   

-   

-   

         Total real estate construction

33   

64   

81   

57   

35   

   Commercial mortgage:

       Commercial Real Estate business line (a)

27   

24   

23   

16   

21   

       Other business lines (b)

25   

15   

23   

18   

8   

         Total commercial mortgage

52   

39   

46   

34   

29   

   Residential mortgage

6   

11   

2   

2   

5   

   Consumer

9   

7   

12   

6   

7   

   Lease financing

6   

6   

24   

-   

1   

   International

13   

5   

4   

1   

1   

       Total loan charge-offs

233   

245   

257   

161   

144   

Recoveries on loans previously charged-off:

   Commercial

7   

3   

5   

3   

6   

   Real estate construction

-   

1   

-   

-   

1   

   Commercial mortgage

1   

-   

2   

-   

2   

   Residential mortgage

-   

-   

-   

-   

-   

   Consumer

-   

1   

-   

1   

1   

   Lease financing

-   

-   

1   

-   

-   

   International

-   

1   

1   

-   

1   

       Total recoveries

8   

6   

9   

4   

11   

Net loan charge-offs